Legislative Initiatives

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Metal Trades Legislative Check List

• Strengthen and Enforce Buy American Laws and Related Statutes
• Curtail the Use of Offsets
• Continue Title XI Loan Guarantees
• Build a 375-Ship Navy

Metal Trades Department Legislative Initiatives

The Metal Trades Department is supporting legislation to tighten up provisions of the Buy American Act and related statutes as well as appropriations to continue the U.S. Maritime Administration’s Title XI Loan Guarantees which enable ship owners to find financing for vessel construction. Both of these programs carry minimal cost to the government while creating dynamic job creation opportunities in the U.S.

Buy American and Offsets

Strenghening "Buy American" requirements would reign-in current problems confronting workers and employers in the U.S. Defense Industrial base by counteracting the effects of "offset" demands by foreign governments and suppliers. Offsets have the effect of compromising U.S. defense technology and causing job losses when foreign governments demand that they be given concessions to build substantial portions of their purchases of equipment—including ships, aircraft and related components in their home country. The Department is firmly opposed to any efforts to repeal, undermine or weaken enforcement of the Jones Act.

Title XI Loan Guarantees

Full funding for Title XI loan guarantees will encourage ship lines to build new vessels in U.S. ship yards. We are urging Congress to authorize $50 million in FY 2004 to assure the continuation of the Title XI program.

375-Ship Navy

Supporting the war in Iraq and the continuing military presence in Afghanistan has highlighted the current inadequacies of the U.S. Navy. The Navy has been operating far below the desirable level of fleet capacity and has done and outstanding job. However, current estimates of seapower needs by the Pentagon and others indicate that there is an urgent need to undertake a massive ship acquisition program to bring the Navy fleet up to its 375 ship target level. The Navy needs to order between 12 and 14 ships a year over the next 30 years to meet this target and to appropriate some $15 billion a year to support that effort.